Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3% - Time to Sell?

Key Points

• AMD shares fell 3% on Tuesday, with the stock trading as low as $437.23 before closing at $475.51, below the prior close of $490.33.
• The article says the weakness is mainly tied to a broad semiconductor selloff and profit-taking in the recent AI-led tech rally, rather than a company-specific breakdown.
• Despite the drop, Wall Street remains generally upbeat: several analysts raised price targets and AMD recently beat quarterly expectations, posting $1.37 EPS on $10.25 billion in revenue, up 37.8% year over year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) dropped 3% on Tuesday . The stock traded as low as $437.23 and last traded at $475.51. Approximately 37,365,453 shares changed hands during trading, a decline of 3% from the average daily volume of 38,462,297 shares. The stock had previously closed at $490.33.

Trending Headlines about Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD’s long-term AI narrative remains strong, with multiple articles highlighting continued demand for its data center products and the company’s role in AI infrastructure growth, including EPYC CPUs and Instinct GPUs. Article Title
• Positive Sentiment: AMD announced a £2 billion investment in the United Kingdom over five years to expand AI research, supercomputing, and workforce development, which could strengthen its ecosystem and deepen customer relationships. Article Title
• Positive Sentiment: Several recent analyst notes stayed constructive, with firms such as Mizuho, TD Cowen, Barclays, and Goldman Sachs maintaining bullish views and raising price targets, reinforcing optimism around AMD’s AI growth outlook. Article Title
• Neutral Sentiment: AMD also received attention for strategic partnerships with Imperial College London, Oriole Networks, and the University of Cambridge, which broaden its AI and scientific computing footprint but are unlikely to move the stock near term by themselves.
• Neutral Sentiment: Short-interest data showed no meaningful change in reported shares, so there is no clear evidence of a fresh bearish positioning shift from that update.
• Negative Sentiment: The main drag on AMD today is a broad semiconductor pullback, with articles noting chipmakers, including AMD, are falling as investors unwind a recent tech relief rally and reassess AI trade leadership. Article Title
• Negative Sentiment: Some market commentary emphasized that AMD remains expensive relative to peers and that hedge fund/ARK activity has included selling, which may be adding to near-term caution. Article Title

Wall Street Analysts Forecast Growth

AMD has been the topic of several analyst reports. Roth Mkm reissued a "buy" rating and issued a $500.00 target price on shares of Advanced Micro Devices in a report on Wednesday, May 6th. Benchmark boosted their target price on Advanced Micro Devices from $325.00 to $485.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Wells Fargo & Company boosted their target price on Advanced Micro Devices from $345.00 to $505.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Wolfe Research began coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They issued a "peer perform" rating for the company. Finally, Barclays increased their target price on Advanced Micro Devices from $500.00 to $665.00 and gave the company an "overweight" rating in a report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $419.86.

Advanced Micro Devices Stock Performance

The business has a 50 day moving average of $364.09 and a 200 day moving average of $266.99. The company has a market capitalization of $775.37 billion, a P/E ratio of 155.91, a price-to-earnings-growth ratio of 1.37 and a beta of 2.50. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $9.90 billion. During the same period in the prior year, the company earned $0.96 earnings per share. The firm's revenue was up 37.8% on a year-over-year basis. On average, sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Nora Denzel sold 8,626 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the sale, the director directly owned 87,173 shares of the company's stock, valued at $45,504,306. This trade represents a 9.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Paul Darren Grasby sold 24,376 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the sale, the executive vice president directly owned 105,222 shares of the company's stock, valued at $46,759,604.58. The trade was a 18.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 339,532 shares of company stock worth $119,504,341. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors have recently modified their holdings of the stock. Joseph Group Capital Management purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $25,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $27,000. Basepoint Wealth LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter worth approximately $30,000. Finally, Graney & King LLC purchased a new stake in shares of Advanced Micro Devices in the first quarter worth approximately $31,000. 71.34% of the stock is owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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